Tuesday, 16 January 2018

Originally posted on Facebook - Sept 25, 2017

To those who read my posts frequently, here is an update on the scenario where I received a winning Cash Pot Ticket for $TT20,000 and intended to use some of the cash over 24 months in a Business Development:

1 The Business Development is intended to increase the size of operation of what is currently a hobby or what used to occupy a minute part of my life financially and or in terms of hours and knowledge.

The Business Development area which I have selected is Gardening - Container & Leasehold land, however in this situation I am covering Container Gardening for a period of time.

2 Expectations with respect to Container Gardening:

The cost of the containers may be written off over a number of years or planting periods due to:
a) Durability and expected use of containers over a number of periods
b) Development of knowledge of different plants;
c) tbd - to be determined
d) tba - to be assessed

3 Soil

Soil, like the containers may last for a number of periods, however additional nutrients may need to be added periodically, hence the cost of the soil may be written off to expenses for the first 3 years as follows:

Year 1 Top Soil: Purch - 50% Exp, 50% Deferred Expense
Year 1 Promix: Purch - 75% Exp, 25% Deferred Expense

Year 2 Top Soil: Purch - 50% Exp, 50% Deferred Expense
Year 2 Promix: Purch - 75% Exp, 25% Deferred Expense
Yr 2- Yr 1's Top Soil - 10% Exp, 40% Deferred Expense
Yr 2 - Yr 1's Promix - 10% Exp, 15% Deferred Expense

Year 3 Top Soil: Purch - 50% Exp, 50% Deferred Expense
Year 3 Promix: Purch - 75% Exp, 25% Deferred Expense
Yr3 - Yr 2 Top Soil - 10% Exp, 40% Deferred Expense
Year 2 Promix - 10% Exp, 15% Deferred Expense
Yr 3- Yr 1's Top Soil- 10% Exp, 30% Deferred Expense
Yr 3 - Yr 1's Promix - 5% Exp, 10% Deferred Expense

Purch - Purchase
Soil mix, brand & periods of purchase are subject to choice.

It is assumed that an organic approach may be used for this venture, due to preferences. 

Should a person wish to use fertilisers of any type, the terms and conditions may be modified to take account of this request and expectations.

Each year the soil content, the harvest and the project may be assessed with respect to the following:

Weather conditions, damage, accidents, financial stability of the venture, exit strategy and new ventures.

More frequent assessments, such as a six week assessment may be performed and as needed going forward.

4 The estimated drawdown for this Business Development over the two year period or a twenty four (24) month period is $4,800.

Funds may be accessed for a budgetary period of up to ten (10) months in the first year.

At the end of the first ten (10) months, a decision as to the way forward is to be determined.

In the allocation of the funds received, approximately two thirds of the funds were allocated to Personal Expenses.

However there was the option to invest the funds in the short term, to provide security for the facility and to generate a return and to develop a history of good credit during the period and with respect to this project.

The above information may be used as part of:

~ An assessment of accounting knowledge and practices,
~ An assessment of agricultural practices
~ An assessment of Report Writing, Grammar, mathematics, knowledge of a business or a lifestyle practice.

Disclaimer: I am not advocating gambling nor am I stating that I have won a Cash Pot, the value was obtained from a Cash Pot Payout slip which is available to the public. Each day the payout may differ.

copyright Jennifer N Bailey September 25, 2017 email

Originally posted on Facebook - Scenario Planning 2017-10-11-001:

Jennifer is the holder of 4 winning Cash Pot Tickets of $30,000 each.

She plans to cash them in and place 30 fixed deposits of $4,000 (or less*) each at the bank.

Each month two deposits will be placed. In some months an additional two deposits will be placed.

The bank accepts deposits for periods of 1 month, 3 mths, six months and 1 year.

Taking into account that Jennifer intends to:

Pay Green Fund Levy and Business Levy (local qrtly taxes) on the income generated from the fixed deposits*, and

Pay the above taxes as late as possible while still meeting the statutory deadlines,

Hold some of the deposits so that at a point in time there is flexibility, what terms would you suggest that the deposits be placed for?

A starting plan to the above will be provided in another post.

Feel free to try the above out, as the $4000 amount can be $400 or more, depending on where you are with your savings.

Originally posted on Facebook - Nov 23, 2017 - Collecting Cash Pot Payout Slips

Every so often I collect the Cash Pot Payout slips and I try to imagine what I would do if :

I played several combinations of numbers or 

If I actually won in one of the categories for which the prize changes every day depending on the multiplier which is "generated" and the number of plays for the day.

So here is some information on one of the ideas which I have jotted down as being a good choice for a big win:

Commit to payments towards electricity, telephone and food for a year (12*700 =$8,400)

Remember these are contributions and are not intended to meet the full amount which is due...

So here is my idea of what my $500 towards the Food would be spent on:

P.S. The electricity and telephone payments are to be made monthly to develop the habit of tracking money and reducing costs as quickly as possible.

1 - 5 "packs" of soup materials; (each item in the pack weighs about 1/2 a pound and the estimated cost of a pack is about $10. Total cost is $50.

Given that there are items which may not last a month in the fridge, I would buy these items weekly. Alternatively, if there is space in the deep freeze, you can peel items like pumpkin and freeze it until you are ready to use it.

This soup is light weight and the actual cost can be increased by adding other items, such as green figs, cassava, dasheen. Examples of items in the soup pack are: split peas, potatoes, carrots, pumpkin, garlic, ginger.

Additional sides which can be added are: a sandwich to add some depth to the soup or dessert.

2 $100 - Flour, butter, etc. This is a 10kg bag of flour which can cost about $60, so there is $40 to spend on "flavourings and rising agents such as yeast and baking powder"

3 $150 - Cheese - This works out to 2 pieces of cheese @ about $15.00 each for 5 weeks.

Look at the unit price of cheese and shop around until you get a low unit cost. If there are less than 5 weeks in the month, then you may have a saving of $30. in that month.

I buy cheese on a Wed and I try to not buy extra pieces during the week. The size of the household also impacts upon the use of cheese. 3/4 of one piece of cheese can contribute towards the Sunday lunch, ( a grater with small holes helps in this situation).

4 $100 - Potato, pumpkin, beans - This is about $20 in potato, pumpkin and green beans per week and does not take into account the cost of taxi fare or use of a vehicle. If there are less than 5 weeks in the month, then you may opt to save the 5th week's $20.

Between #1,3, 4, there are savings of $60 which can be put away. At the end of the year, there will be savings of $720 for food emergency money. A Money Market account at UTC would make life easier with respect to keeping this savings separate to your other savings.

I was pleasantly surprised by a colleague who visited on an assignment and he indicated that they use their car on weekends as it was cheaper to use the train or bicycle to work.

Also, once upon a time in my life I lived by buying things according to recipes as I did not know about buying things and winging it towards cooking. Other persons did not readily understand my thinking as I felt less stressed when I had money to be flexible and they felt that they needed to have the groceries to cook according to what they wanted.

5 $100 - Mayonaise refill packs ( about 2) buy as you need it; eggs about 2 dozen again, buy as you need it.

The above represents a contribution towards the meals in the house and excludes Sunday lunches, breakfast and dinner on most days. The items in #4 tend to provide for some of the other meals.

I would add another hundred and twenty dollars $120. and buy about 3 sets of 5 tins of sardine and tuna which would be fillers towards breakfast, lunch or dinner depending on your schedule. (P.S. I got the benefit of a Price Smart card which someone paid for, hence the prices.)

If there are any cans left over at the end of the month, then these can either be used as a saving or "sold" to a colleague with the money being put in the UTC MMF account referred to #4.

I actually had some other options re contributions of $500 towards the home which were:

$250 towards milk for: tea, coffee, oats, cornmeal porridge etc.
$250 towards meat, be it minced meat or pieces of chicken.

The above are purchased weekly to allow for flexibility and discounts which become available at different times.

Enjoy the options and let me know what you think....

Btw, I know that there are many persons who are trying different options to make things different in their lives and this has been part of one of the modifications which we have made in ours...

For some persons, having their year start at another point in time actually works for them as they see their results in a different time and way to others.

Originally posted on Facebook - Dec 30, 2017

I wonder how many persons will read and believe the following post:

"I practice thinking up, what I would do, if I had xxx or yyy.

I try to think things through in a way that I may not be exposed to if I relied on where I currently am or where I may be in awhile.

I try to use concepts which I have studied and put them into practice so that my brain does not vegetate because of my day.

Also I try to make each hyperbolic (exaggerated) situation as realistic as possible because sometimes instinct tells me, say this now"...

So for all those who believe that I have won the Cash Pots, I am sorry for upsetting you,. I would enjoy playing the game however right now I am more excited about writing about something to do with the money than trying to win some...

My brain freezes each time I try to guess some numbers

Originally posted on Facebook - Financial Planning Tip April 23, 2016 - 001 Becoming Self sustaining in these times

If I were running a business, in this age where I can provide services to foreign customers I would:

Open a foreign currency account according to the currency in which I am being paid,

According to the service which is being provided and perhaps

According to the geographical location of the client.

In marketing and auditing this is known as dis-aggregating the population, with the population being the funds which I hold in the account, representing the clients!!!! 

This would provide an easy way to track my customers and provide follow up service!!! 

Imagine if I were exporting a good instead of a service, then I may not be able to charge VAT!!!

Of course I may not want the headache of getting items to the airport, too cumbersome!!!

Originally posted on Facebook -Financial Planning Tip April 23, 2016 - 002 VAT (Value Added Tax) Planning Strategies

For most businesses which are registered for VAT, April 25 is the due date for filing their return for a two month period.

At this time, the company or individual is already into the first month of their next VAT cycle!!!

So how investing some time in your business and start looking at the export market for items where there may be a demand for the good which you have!!!

I know that for some products you may not think that there is demand, however given that persons' tastes are changing, according to season and age (think demographics) then look at what pairings you can provide: oats and cinnamon, ginger (tea powder) a small pack of dark brown sugar, currants or pineapple in the tin and liquid full cream milk!

Offer the option to remove any one of the items and increase the quantity of another according to the customer's preference and request.

Another option that I am currently trying for flavor is cream of wheat, cinnamon and tumeric ( recipe is provided upon request ).

With Eid and Divali coming at later times in the year, packages of the components of sawine can be exported from now as persons may be interested in having an alternative dessert or easy drink from now, or better yet parsad!!!

Originally posted on Facebook - Financial Planning Tip April 23, 2016-003 ~ Scenario Planning.

For some persons there is a plan for today's living, there is:

The worst case scenario and there is the "absolutely worst case scenario" 

In some instances the "absolutely worst case scenario" may be living on retirement income (read T&T NIS retirement benefit) for an absolutely long time!

Well, for an optimist, living on that amount of income may not be much of a challenge as:

There may be things that they learnt that come back "naturally" into play, partly because they may work by instinct in lots of ways and

There is the creation of a flow to things that makes everything seem effortless.

For them, during the " "absolutely worst case scenario time" they may take the "bull by the horns" and try to make the "retirement life" work and resolve some of their current costs (read outflows), so that they are facing the next phase of their actual retirement in a better position!!!

Of course they may have fun along the way as they enjoy challenges and creating solutions!!!!

The trick may be to determine when you are willing to try something new and having someone tell you, ok, let's try something else!!!